Reddit stock like AMC Entertainment Holdings (NYSE: AMC) Inventory is on the whirlwind of the vehicle. In fact, the meme stock outbreak doesn’t seem to be over yet, as AMC’s stock price continues to skyrocket. What should serious fundamental investors like us at The Motley Fool do about this? There is no easy answer. The long answer is simply to focus on the real thing and its fundamentals that drive stock prices in the long run.
Reddit stocks like AMC stocks are high risk and gambling stocks
Therefore, if you are considering investing in AMC stocks, you can already assume that you have a higher tolerance than your tolerance. You are trying to make as important a return as the Reddit stock was donated.. But if this is your idea, I would like to stop you there.
Yes, Reddit shares have returned a very favorable amount. But did anyone predict it? Was it even possible or possible to predict it? Similarly, how can you predict what will happen next? You can see where I’m going with this. The future of these Reddit stocks is uncertain. You don’t know when they will go bankrupt, so you have to stick to the basics. This is what the Motley Fool teaches.
When investing, it is just as important to identify downside risks. Indeed, Reddit stocks are floating in thin air, so the downside risk is very high. See the AMC stock chart below. Inventory has risen by more than 2,500% in 2021 alone!
Ballard Power Stocks: ESG stocks with a bright future
As a result, Ballard Power stocks have also been volatile, jumping almost 500% above the $ 50.00 high from the end of 2019 to February 2021. But since then, Ballard shares have plummeted by almost 60%. This is a 60% reduction in just a few months. As you can see, Ballard Power’s inventory isn’t for the timid. Like the Reddit stock, it’s very volatile.
But unlike many Reddit stocks like the AMC stock, the fundamentals are bright.that is ESG stocks with true fundamental drivers.. And this means it’s worth the risk. It also has a lower level of volatility.
The fuel cell market is rising and booming. The cost has been significantly reduced. And governments around the world are deploying fuel cell vehicles. For example, Europe is clamoring for a fuel cell public transport system. China is going further with this impetus. Large vehicles powered by fuel cells, such as buses, excel in reliability, power, distance, and charging time.
Ballard Power stocks: Unlike AMC stocks, it is a well-calculated risk
Ballard Power shares had their own problems, but they remain the shares to buy for long-term profits. So the problem is not like the problem with AMC stocks. Ballard, for example, suffers from the fact that it is involved in a new emerging industry, the fuel cell industry. It’s an exciting and lucrative industry.
It is the ESG industry that is changing the world with zero-emission fuels. However, the risk is high because it is a new industry. There is a risk of hiring and acceptance. There are risks associated with creating something new. I don’t know where the revenue and expenses will be resolved.
But this risk is a risk that can make me angry. AMC’s share price has risen thousands of percent as the Reddit crowd put their nails in it. But basically, the company is a dog. High debt level. Burning cash flow. And a dangerous future that does not justify the surge in stock prices. This is a gambler game. AMC stocks are traded on Reddit-induced short squeeze. It’s not sustainable.
In conclusion, I would like to note these Reddit-led stocks, such as AMC stocks. The other way is just gambling, so stick to fundamental investment. If you are willing to take on additional risks for the potential for very high pay, consider Ballard Power shares.
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This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..
Karen Thomas owns a stake in Ballard Power. The Motley Fool does not have a position in any of the listed stocks.
The AMC and Reddit stock epidemics don’t last long: buy this ESG stock instead!
https://www.fool.ca/2021/06/16/amc-stock-and-the-reddit-stock-craze-wont-last-buy-this-esg-stock-instead/ The AMC and Reddit stock epidemics don’t last long: buy this ESG stock instead!